The region's economy shrank 0.6 per cent in the December quarter, following a contraction of 0.1 per cent in the previous quarter.

"Initially, the Australian dollar fell on the European data and then it rebounded with US equities that were partly boosted by the US jobless claims data," Westpac New Zealand senior market strategist Imre Speizer said.

"There was a little bit of fluctuation but it was confined within a half a US cent band."

The euro fell more than one US cent after the release of the economic data, hitting a one-month low of 133.15 US cents.

The two-day G20 meeting of finance ministers and central bankers, which wraps up on Friday, is discussing the issue of countries manipulating the value of their currencies and the recent heavy fall in value of the yen.

Mr Speizer said a draft communique from the meeting had already been leaked but avoided the phrase "currency war".